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To: wanna_bmw who wrote (154639)1/10/2002 11:06:38 AM
From: Dave  Read Replies (1) | Respond to of 186894
 
wanna,

Damn, it was early in the morning...quit bustin' my chops..

What I meant to post:

Production(n)/PP&E(n-1)

The only problem is that the formula fails to consider any capacity brought "on line" during year n...

And, if you notice, that is simliar to the Fixed Asset Turnover Ratio, with the exception that it averages Fixed Assets...

I think Dan should take costs back 5 years, and do some kind of 5-year model, bringing forward the present costs of each year

Damn, son. want to calculate that on your lunch hour?



To: wanna_bmw who wrote (154639)1/10/2002 11:14:46 AM
From: Dan3  Respond to of 186894
 
Re: do some kind of 5-year model, bringing forward the present costs of each year. He should use a standard deviation to...

That's basically what "net" PP&E is supposed to represent.